Correlation Between Combigene and Sprint Bioscience

Can any of the company-specific risk be diversified away by investing in both Combigene and Sprint Bioscience at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Combigene and Sprint Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Combigene AB and Sprint Bioscience AB, you can compare the effects of market volatilities on Combigene and Sprint Bioscience and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Combigene with a short position of Sprint Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Combigene and Sprint Bioscience.

Diversification Opportunities for Combigene and Sprint Bioscience

-0.12

Correlation Coefficient

Combigene  Sprint Bioscience

Good diversification

The 3 months correlation between Combigene and Sprint is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Combigene AB and Sprint Bioscience AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprint Bioscience and Combigene is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Combigene AB are associated (or correlated) with Sprint Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprint Bioscience has no effect on the direction of Combigene i.e., Combigene and Sprint Bioscience go up and down completely randomly.

Pair Corralation between Combigene and Sprint Bioscience

Assuming the 90 days trading horizon Combigene AB is expected to generate 0.52 times more return on investment than Sprint Bioscience. However, Combigene AB is 1.94 times less risky than Sprint Bioscience. It trades about -0.01 of its potential returns per unit of risk. Sprint Bioscience AB is currently generating about -0.03 per unit of risk. If you would invest  243.00  in Combigene AB on April 24, 2025 and sell it today you would lose (9.00) from holding Combigene AB or give up 3.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Combigene AB  vs.  Sprint Bioscience AB

Combigene AB

Risk-Adjusted Performance

Very Weak

Over the last 90 days Combigene AB has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Combigene is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Sprint Bioscience

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sprint Bioscience AB has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest uncertain performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Combigene and Sprint Bioscience

The main advantage of trading using opposite Combigene and Sprint Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Combigene position performs unexpectedly, Sprint Bioscience can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sprint Bioscience will offset losses from the drop in Sprint Bioscience's long position.

The idea behind Combigene AB and Sprint Bioscience AB pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bonds Directory module to find actively traded corporate debentures issued by US companies.